China has surpassed the Super power United States as world’s leading destination for foreign direct investment.
According to the details, U.N. figures released said that the novel coronavirus pandemic has amplified an eastward shift in the center of gravity of the global economy.
As per the figures, the United States which was on the lead for decades and held No. 1 spot in the list, fell 49% in 2020 as the country struggled to curb the spread of the new coronavirus and economic output slumped.
China, that long ranked No. 2, saw direct investments by foreign companies climb 4% takes the lead in the list.
In 2019, the U.S. received $251 billion in inflows and China received $140 billion. However, China brought in $163 billion in inflows last year, compared to $134 billion attracted by the U.S.
Media reports said that the Foreign Direct Investment dived 42% in the previous year, to $859 billion, a 30% drop from even the depths of the 2009 monetary crisis.
Beijing managed to largely get the dread virus under control last year, despite being the first nation to be hit with the pandemic. Severe lock down measures, early testing on mass level and an profusion of personal protective equipment have been credited for the country’s relatively low death toll.
It should be noted that relations between the United States and China have been to the lowest since the novel coronavirus outbreak in the world. Back in 2018, former President Donald Trump began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are “unfair trade practices” and intellectual property theft.